Traders Cafe with Zak Mir: i3 Energy, Kodal Minerals, Midatech Pharma, Open Orphan, Rainbow Rare Earths
Much followed mineral exploration and development company, Kodal Minerals (KOD) which is focused on the Bougouni Lithium Project and its gold assets in West Africa, updated the market on the gold exploration programme in Côte d'Ivoire. This includes continued high-grade surface geochemical results from the Dabakala Concession in central Côte d'Ivoire. The company said the wide-spread, consistent surface gold anomalism at Dabakala is an enticing prospect with multiple newly defined gold trends in a previously unexplored region. Kodal added that it continues to focus on its Mining Licence Application in Mali, which is progressing as expected.
There was a packed RNS from sprawling independent oil and gas company, i3 Energy (I3E) with a 4 in 1 experience: Operational Update, Production Acquisition, Proposed Dividend and Corporate Presentation. Perhaps the sweetest aspect here was the company’s intention to become a dividend payer, via a special dividend, with scheduled half-yearly dividend payments thereafter alongside its Interim and Annual Reports. i3 expects to set the special dividend's ex-dividend date for 8 July 2021, with the payment being made in late July.
The word “Breakthrough” is normally welcome in a RNS, and this is what has been served up at R&D biotechnology company Midatech Pharma (MTPH). It said it has achieved a breakthrough in vitro data which demonstrate Q-Sphera's potential to formulate proteins into long-acting injectable products, as well as significant progress across multiple other programmes. The company added that it has pivoted from a largely singular focus on one Phase III ready asset (MTD201, Q-Sphera octreotide) to "multiple shots on goal" with an expanded pipeline of nine earlier stage programmes.
One could probably write a book or two about what has been achieved at pharma services Open Orphan (ORPH) over the past couple of years, although the near 10x share price multiple over this period is probably a good way of summarising the track record. Interestingly enough, the company has stated in its final results to the end of December last year that it is now keen on delivering quality of earnings (not just quantity) after going cash positive in Q4 2020. It added that the rapidly evolving COVID-19 pandemic and broader growth of the global infectious disease market should translate into very strong growth opportunities for the Company going forward. Perhaps the icing on the cake in terms of the update was the comment that demergers offer an excellent opportunity for shareholders to maximise value, through separate shareholdings in a profitable pharma services company such as Poolbeg Pharma, which is seeking admission of its shares to trading on AIM. Open Orphan also said that going forward it would take the opportunity to progress the Disease in Motion® platform and is targeting delivery of full year profit in 2021 as it focuses on enhancing profits and earnings
A maiden JORC estimate is also another pleasant RNS experience, and in this case it has been delivered by Rainbow Rare Earths (RBW). The company said that the Maiden Mineral Resource Estimate for Phalaborwa marks an important milestone for Rainbow, underpinning the opportunity for the rapid development of a low capital and operating cost, high value processing facility in South Africa. The maiden JORC Mineral Resource has been estimated based on the assay results received from 1,056.3m of auger drilling completed in December 2020. RBW said that further metallurgical test work is ongoing with ANSTO Minerals in Australia to define a preliminary processing flow sheet to support a scoping study/preliminary economic assessment for the Phalaborwa project, which is expected to be completed in Q3 2021.
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